China: Tesla Sales Continue to Decline in October
This page is translated from the original post "Chine : les ventes de Tesla toujours en berne en octobre" in French.
- 03/11/2023 8:41
The months keep passing and look the same for Tesla in China with yet another October marked by low sales levels.
If you’re not progressing, then you’re falling behind in the rankings. This principle, applicable to many things, has been true for almost 6 months now for Tesla in China, where sales are stagnating… while those of its rivals are skyrocketing.
After a very worrying quarter, driven by the arrival of the new Model 3 Highland and the need to modernize the Shanghai plant, Tesla promised a return to normal in October 2023. Now it’s time to take stock.
According to the China Passenger Car Association (CPCA), which records all car sales in the country, Tesla sold 72,115 units of its Model 3 and Model Y last month. That’s a 0.6% increase compared to October 2022. A stagnation that signals a loss of momentum compared to giants like BYD, whose sales are experiencing double-digit growth.
Chinese brands are much cheaper
The other concern is the continued slowdown, with 1,900 fewer sales than in September, which was already alarming. And a decrease of 14,000 compared to August. Tesla justifies itself once more with a distinction between sales and deliveries to customers: the Model 3 has only been delivered in China since October 26, and the new Model Y since October 15.
Similarly, priority was given to supplying the European market, which still believes in Tesla’s technological superiority. But for how much longer? Because the phenomenon affecting the Chinese market will spread: customers capable of buying a sedan at €40,000 are limited and are mostly already served today.
China, but also Europe and the United States now expect products that democratize the electric car, with prices around 20,000 euros. Tesla, however, cannot do this, as it is rather betting on a pickup truck that will remain niche in Europe and China. A strategic choice in its priorities that could be fatal? Elon Musk himself has hinted at this.
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